Wednesday, October 22, 2008

WSJ: Bernanke Is Fighting the Last War

This interview with Anna Schwartz is perhaps the most important interview you will read. Anna worked with Milton Friedman on a well respected book and is in the same mold as Friedman. She doesn't appear to be happy with the way Bernanke is handling this crisis - she believes that things are different now than during the great depression and thus different things need to be done, Bernanke (a huge student of the Great Depression) is fighting today's problems with the solutions to yesterdays problems.

This is actually a little scary, but I know Ben reads the Wall Street Journal and has a deep respect for Anna....perhaps this is her way of letting him know he needs to make a few adjustments.

This is a fascinating interview.

Scott Dauenhauer CFP, MSFP, AIF